Demonetization in India, Structural Change and Gender Sectoral Segregation in Sub-Sa   THE LEVY NEWS August 30, 2023 Our Site Research Events Publications New Publications Policy Note 2023/4 | August 2023 Effects of Forced Formalization (Demonetization) in the Indian Economy Nischal Dhungel Nischal Dhungel examines the impact of India’s demonetization experiment—an effort at “forced formalization” of the economy. He urges a more organic approach to formalization, pairing efforts to bring the unbanked population into the banking system with greater funding and accessibility for India’s signature employment guarantee program. » Read complete text Working Paper No. 1028 | August 2023 Contractionary Effects of Foreign Price Shocks (and Potentially Expansionary Effects of Inflation) Michalis Nikiforos and Simon Grothe Using the model proposed in Krugman and Taylor’s “Contractionary effects of devaluation” (1978), Research Scholar Michalis Nikiforos and Simon Grothe examine the macroeconomic effects of shocks to foreign prices. They show that these shocks can be contractionary for two reasons: (i) because they imply a loss of income if an economy has a trade deficit or import prices increase proportionally more than export prices; (ii) because there is a redistribution of income from wages to profits and rent, which leads to a decrease in consumption and output (as the wage earner's propensity to consume is higher than those of profit earners and rentiers). » Read complete text Working Paper No. 1027 | August 2023 Structural Change and Gender Sectoral Segregation in Sub-Saharan Africa Izaskun Zuazu In this paper, Izaskun Zuazu helps to fill the gap in literature on the gender implications of structural change by analyzing the role of structural change in the gender distribution of sectoral employment in sub-Saharan African countries. Zuazu's findings suggest that manufacturing, utilities, construction, business, and government services are key to correcting gender biases in employment in SSA Countries along the process of structural change. » Read complete text Working Paper No. 1026 | August 2023 Banking Sector, Distributive Conflict, and Monetary Theory of Distribution Riccardo Zolea In this paper, Riccardo Zolea analyzes the implications of distributional conflict for the monetary theory of distribution and studies what role the banking sector and the financial capitalists play in Pivetti's monetary distribution theory approach. His work leads to a general discussion of the dynamics inherent in the contrast between workers and capitalists and between financial and productive capitalists, showing that six different distributional configurations are possible (plus two others that are unstable or unrealistic), of which only two can be explained through Pivetti's monetary theory of distribution and the other four can be explained by elaborating more recent approaches that continue, enrich, and develop Marx's approach. » Read complete text Working Paper No. 1025 | August 2023 Unconventional Monetary Policy or Automatic Stabilizers? A Financial Post-Keynesian Comparison Nitin Nair Nitin Nair points out—using Davidson’s (1972) financial post-Keynesian framework—how unconventional monetary policy is not sufficient to create the conditions of backwardation that stimulate production and explains how automatic stabilizers, using the Kalecki profits (price) equation, are the best avenue to create the conditions for backwardation. He concludes, like Keynes, that fiscal policy is the reliable path to economic expansion. » Read complete text Working Paper No. 1024 | July 2023 When Minsky and Godley Met Structuralism: A Stock-flow Consistent Approach to the Currency Hierarchy Nitin Nair In this paper, Nitin Nair emphasizes the international forces that enable the persistence of underdevelopment, by formulating two novel financial post-Keynesian behavioral equations, simulated in a stock-flow consistent model: an international reserves function and a domestic interest rate function. He finds government spending complemented by import substitution to be the most appropriate response to a crisis of international origin and suggests the need for international cohesion between emerging economies to create a more conducive international financial and trade system, halting the reproduction of underdevelopment. » Read complete text SUPPORT OUR PROGRAMS Levy Graduate Programs in Economic Theory and Policy Backed by over 30 years of proven policy impact, the Levy Institute Graduate Programs in Economic Theory and Policy provide innovative approaches to topics such as time use, poverty, gender, student debt, and employment that other programs neglect, encouraging students to evaluate policies, examine behavior, and dig deeper into the social phenomena that underlie economic outcomes. Along with a challenging academic environment, the Levy programs also offer a supporting and caring community where students benefit from sharing their research with faculty and their peers to promote academic exchanges and intellectual collaboration. To find out more, visit bard.edu/levygrad or follow the program’s Facebook page. Interested students should contact the Institute at [email protected] for more information. Scholarships are available. Media and News Coverage In July, Research Scholar Giuliano Yajima was invited as a lecturer for the 24th edition of the Economic Commission for Latin America and the Caribbean (ECLAC) School of Latin American Development Studies (ELADES). He provided an introduction to Godley and the Stock-Flow Consistent approach, pointing out its relevance to analyze the dynamics of emerging and developing economies. Every year, ELADES brings together young researchers and undergraduate and/or graduate degree holders interested in studying the Latin American development process. On September 11, Senior Scholar L. Randall Wray will be giving a presentation on the German translation of his book Money for Beginners in Berlin at the Café en Passant. The presentation will take place at 7 pm CEST.     Our Website | Press Room | Donate   Levy Economics Institute | Blithewood, Bard College, Annandale-On-Hudson, NY 12504-5000 (P): 845-758-7700 Unsubscribe [email protected] Update Profile | Constant Contact Data Notice Sent by [email protected] powered by Try email marketing for free today!